Home sales in Canada rose 1.4% from January to February 2012, recouping one-third of the monthly decline in activity between December 2011 and January 2012 according to the Canadian Real Estate Association (CREA).

Gary Morse, CREA’s President, said: “The national rise in both sales activity and the number of newly listed homes beyond the normal seasonal increase provides clear evidence that Canadians are confident for housing market prospects. Confidence varies by region, as do prospects for housing demand. For that reason, buyers and sellers should talk to their local realtor to understand current and prospective trends in their local housing market.”

“It is important to remember that home sales and purchases are a significant source of economic activity and job creation. Total consumer spin-off spending resulting from home sales and purchases will add an estimated $19.4bn to the economy, and create over 159,000 jobs in 2012,”

Activity also increased on a month-over-month basis in half of all local markets during February, led by Calgary, Toronto, Barrie, Montreal, Quebec City, Saint John, and Halifax-Dartmouth. Actual (not seasonally adjusted) activity was up 8.6% on a year-on-year basis as 61,772 homes traded hands in the first two months of 2012, a 6.7% over the same period in 2011.

The actual (not seasonally adjusted) national average price for homes sold in February 2012 was $372,763, a 2% rise from the same month in 2011.

Commenting, Gregory Klump, CREA’s Chief Economist said: “In February 2011, the national average price was stretched upward by a spike in high-end home sales in some of Vancouver’s priciest neighbourhoods, and a replay of that was not expected this year. February’s data bear this out, but other factors are now keeping the national average price aloft. The main one is the housing market in Toronto, where a tight balance between supply and demand continues to drive some of the strongest home price gains in the country, particularly for single detached properties.”